trailing P/E

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Trailing P/E

The price of a security per share at the present time divided by the trailing earnings per share over the previous year. It is the most commonly used form of the P/E ratio because it is based on actual, rather than projected, earnings. A trailing P/E ratio is thus the most accurate way to measure a security's valuation, that is, the fair value of a stock in a perfect market.
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trailing P/E

The price-earnings ratio of a firm's common stock calculated as the current stock price divided by the previous year's earnings per share. Compare forward P/E.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The MSCI GCC index currently trades at a trailing price to earnings ratio of 14.1, which is on par with MSCI Emerging Markets (13.8) and Frontier Market (14.4) indices.
Overall, companies in the S&P 500 financial sector trade at a trailing price to earnings ratio of 14.5 and are up 2.2 percent for the year to date, according to Thomson Reuters data.
The Index is trading at 14.9X trailing price to earnings, a premium to emerging markets.
At the sectoral level, the BSE FMCG Index is trading at 31 times the 12-month trailing price to earnings multiples, while at 26 times, the healthcare and information technology indices are the next most valued.
At 5,640 Nifty is trading at 23.7 times its 12- months trailing price to earnings multiple.